Sift Science Nets $18 Million in Second Financing Round
May 15, 2014
Software provider Sift Science, which leverages large-scale machine learning to root out fraud for e-commerce merchants, yesterday announced it has received $18 million in new venture financing. The Series B round was led by Spark Capital and will be used to bolster staff and “accelerate our sales, marketing, and product development initiatives.” Merchants using Sift Science to manage and reduce fraudulent transaction include Airbnb, Uber, Indeed, JackThreads and Kickstarter. The San Francisco-based startup said its technology has detected 95 percent of its customers’ fraud with an “industry-leading” false positive rate of 7 percent.
“The internet offers unprecedented connectivity, scalability, and anonymity. Unfortunately, it can also be abused,” said Sift Science CEO Jason Tan. “As activity moves from the physical to the online world, so does fraud. Online chargebacks, spam, referral abuse, and account takeovers cause all sorts of headaches for businesses that would rather focus on their core competencies.”
The Series B round brings Sift Science’s total funding to $23.6 million.